Stanford University Operations And Supply Chain Management Assignment Help - the company’s products

Question - Intercontinental’s special order also requires 1,000 kilograms of genatope, a solid chemical regularly
used in the company’s products. The current stock of genatope is 8,000 kilograms at a book value of
8.10pper kilogram. If the special order is accepted, the firm will be forced to restock genatope earlier
than expected, at a predicted cost of 8.70pper kilogram. Without the special order, the purchasing
manager predicts that the price will be 8.30pwhen normal restocking takes place. Any order of
genatope must be in the amount of 5,000 kilograms.

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